Detail of George Washington arriving by boat in New York on April 23, 1789, for presidential inauguration.

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The leaders of the new nation face the challenges of establishing a strong economy and a stable, democratic government.

Launching a New Republic, 1789–1800

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SECTION 2

SECTION 1 Washington’s Presidency

SECTION 3 The Federalists in Charge

Challenges to the New Government

Launching a New Republic, 1789–1800

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Section 1

Washington’s Presidency The president and the Congress begin to set up the new government.

Washington Takes Office

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• George Washington inaugurated, sworn in, as 1st U.S. President (1789)

1SECTION

• John Adams, first vice-president

Washington’s Presidency

• Washington knows every action as president will set a precedent

• Congress agrees to call Washington “Mr. President”

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Setting Up the Courts

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1SECTION

• Congress passes the Federal Judiciary Act (1789)

• Act also provides for lower federal courts • The number of judges later grows to nine

• Gives Supreme Court six members:- 1 chief justice or judge - 5 associate judges

• John Jay is named chief justice

Washington’s Cabinet

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1SECTION

• Congress creates 3 departments to help the president:- war department - state department - treasury department

• Heads of departments are president’s cabinet

Continued . . .

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1SECTION

• Attorney general, Edmund Randolph, gives legal advice

• Secretary of war, Henry Knox, oversees the nation’s defense

• Secretary of the treasury, Alexander Hamilton, manages U.S. finances

Continued Washington’s Cabinet

• Secretary of state, Thomas Jefferson, oversees diplomatic relations

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Economic Problems

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1SECTION

• By 1789, U.S. has huge national debt—$52 million

• Alexander Hamilton’s financial plan shows his belief in: - a strong central government- government encouraging business, industry - pay debt to nation’s wealthy, gain their

support for government

• U.S. must pay debt to gain respect of other countries

Hamilton’s Financial Plan

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1SECTION

• Alexander Hamilton proposes 3-step financial plan to Congress (1790)- pay off all war debts- raise government revenues- create a national bank

• To gain southern support, U.S. agrees to place capital in South

• Many southern states have paid war debts, northern states have not

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Continued . . .

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1SECTION

• Hamilton supports tariffs (tax on imported goods) because:- raises money for U.S. government - encourages growth of U.S. industry - encourages people to buy American goods

• Hamilton calls for National bank, safe for government investments

• Bank would make loans to businesses, issue bank notes

Continued Hamilton’s Financial Plan

Interpreting the Constitution

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1SECTION

• Thomas Jefferson, James Madison against a national bank

• Alexander Hamilton has more flexible interpretation of Constitution

• Claim that the Constitution does not allow for a national bank

• Claims Congress has power to set up bank • George Washington approves a national bank

(1791)

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Washington establishes central authority at home and avoids war with European powers.

Section 2

Challenges to the New Government

Securing the Northwest Territory

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2SECTION

• Trans-Appalachian West between the Appalachians, Mississippi River

• Spain threatens to close New Orleans’ port to American trade

• Spain, Britain, U.S., Native Americans all claim parts of land

Challenges to the New Government

• Stirs up trouble between white settlers, Native Americans

• Supports Native Americans who clash with American settlers

• Britain violates Treaty of Paris, holds forts in Northwest Territory

Map

Battle of Fallen Timbers

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2SECTION

• President Washington sends troops into Northwest Territory

• Defeat Native Americans at Battle of Fallen Timbers (1794)

• Washington sends more troops led by Anthony Wayne

• Native American tribes defeat U.S. troops twice

• 12 tribes sign Treaty of Greenville with United States (1795)- surrender much of present-day Ohio,

Indiana to the U.S.

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The Whiskey Rebellion

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2SECTION

• Farmers resist U.S. tax on whiskey • More economical for farmers to sell rye

whiskey than bushels of rye• Use whiskey as money to get supplies • In Pennsylvania, farmers stage Whiskey

Rebellion against tax (1794) • Troops subdue rebellion, show government

has power to enforce laws

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The French Revolution

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2SECTION

• French Revolution—French people rebel against their government

• Some Americans want U.S. to support revolution and the cause of liberty

• France declares war on Britain, Holland, Spain

• U.S. remains neutral, not siding with one country or other (1793)

• Others do not want war with Britain

Image

NEXT

2SECTION

• British seize cargoes of American ships from the French West Indies

• British pay for damages to U.S. vessels, leave Ohio Valley by 1796

• U.S. Chief Justice John Jay convinces British to sign Jay’s Treaty (1794)

• Seizures make it difficult for the U.S. to remain neutral

• Jay fails to open profitable British West Indies trade to Americans

Remaining Neutral

Continued . . .

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2SECTION

• Thomas Pinckney convinces Spain to sign Pinckney’s Treaty (1795):- allows Americans to travel freely on the

Mississippi River- store goods at New Orleans without custom

duties• Spain accepts 31st parallel as boundary

between Florida, U.S.

Continued Remaining Neutral

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Section 3

The Federalists in ChargeThe split between Hamilton and Jefferson leads to the growth of political parties.

Washington Retires

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• During second term, George Washington receives some criticism

3SECTION

• Washington warns that political divisions can weaken the nation

• Relations with governments of other countries—foreign policy

• Washington urges U.S. not to form permanent alliances with nations

The Federalists in Charge

Growth of Political Parties

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3SECTION

• Alexander Hamilton’s views:- opposes French Revolution- for strong central government- promotes trade, manufacturing, cities

• Thomas Jefferson’s and James Madison’s views:- for French Revolution- strong government could lead to tyranny- promote farming

• Differences lead to the nation’s first political parties

Continued . . .

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3SECTION

• Political party: group that promotes its ideas, influences government

• Alexander Hamilton and friends start the Federalist Party

• Thomas Jefferson, James Madison start Democratic-Republican Party

Continued Growth of Political Parties

Chart

John Adams Takes Office

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3SECTION

• John Adams is presidential candidate for Federalists

• Adams wins election; runner-up, Jefferson, is vice-president (1797)

• Thomas Jefferson is candidate for Democratic-Republicans

Problems with France

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3SECTION

• In 1797, Britain and France still at war

• Federalists want war with France

• French seize U.S. ships, prevent trade with British

• President Adams wants to restore calm

Image

Continued . . .

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3SECTION

• President Adams sends diplomats to France, they are ignored

• Americans are outraged by XYZ Affair

• 3 French agents (known as X,Y, Z) ask for loan, bribe from diplomats

Continued Problems with France

• Congress cancels treaties, allows U.S. to seize French ships

Image

The Alien and Sedition Acts

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3SECTION

• Democratic-Republicans, Federalists criticize each other

• Many immigrants are Democratic-Republicans

• To stop criticism of Federalists, President Adams targets immigrants

• Federalist Congress passes the Alien and Sedition Acts (1798):- power to arrest disloyal aliens during

wartime- outlaws saying, writing anything false,

harmful against government

Image

Continued . . .

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3SECTION

• Alien and Sedition Acts clamp down on freedom of speech

• State can refuse to pass a federal law if it sees law as unconstitutional

• Democratic-Republicans use states’ rights to fight acts

Continued The Alien and Sedition Acts

• Kentucky, Virginia find Alien and Sedition Acts unconstitutional

• Repeal acts or let them expire between 1800 and 1802

• Democratic-Republicans gain control of Congress

Peace with France

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3SECTION

• U.S. and France make peace, sign Convention of 1800:- stops naval attacks between France and

U.S.- allows U.S., French ships to sail the ocean

in peace

NEXT

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